PICC(SH:601319) 13个精算师·2025-06-19 08:36Core Viewpoint - The implementation of the DRG/DIP reform in China's healthcare system is expected to lead to a decline in overall medical expenses, creating new opportunities for the commercial health insurance market, particularly for million medical insurance products, which have significant growth potential [1][2]. Group 1: Market Overview - China's medical expenditure consists of three parts: basic medical insurance expenditure, personal expenditure, and commercial health insurance payouts. The commercial health insurance currently accounts for only about 5% of the total medical payment system, indicating substantial growth potential [3]. - In 2024, the commercial health insurance premium scale reached 977.3 billion yuan, with medical insurance premiums expected to exceed 400 billion yuan. Million medical insurance is projected to account for approximately 20% of this market [3][4]. Group 2: Product Upgrades - The "Good Medical Long-term Insurance" series by PICC Health has undergone significant upgrades, including the introduction of new coverage for purchased drugs and medical devices, advanced drug and device coverage, and expanded access to specific diseases and advanced medical facilities [8][9][12]. - The upgraded flagship version for 2025 includes coverage for over 1,500 advanced drugs and devices, significantly expanding the previous list of 199 special drugs and 3 CAR-T anti-cancer injections [9]. - The insurance product has also relaxed the age limit for policyholders from 55 to 60 years, allowing more older individuals to obtain coverage [12][17]. Group 3: Target Demographics - The elderly population (60 years and above) in China is projected to reach 310.31 million by the end of 2024, with a significant portion suffering from chronic diseases. This demographic represents a growing market for health insurance products [17][20]. - The "Good Medical Long-term Insurance for the Elderly" has been specifically designed to cater to this demographic, offering low entry barriers and a 20-year guarantee for renewal, making it appealing to older consumers [20][22]. Group 4: Company Performance - PICC Health reported a total insurance premium income of 48.7 billion yuan in 2024, a year-on-year increase of 7.7%. The company maintains a leading position in the industry with a customer base of 76 million [24][25]. - In the first quarter of 2025, PICC Health achieved an insurance business income of 28.1 billion yuan, with a net profit of 2.43 billion yuan, reflecting a significant growth rate compared to the industry [24][25].